The Karnataka government will take a "consent value" based on a consensus between farmers and the government for arriving at a price for acquiring land for ArcelorMittal's proposed Rs30,000-crore steel project in the state.
V P Baligar, the state's principal secretary for commerce and industries, told Business Line that the consent value will be decided by a committee headed by the deputy commissioner of the district where the project will be based. The committee will include of farmers' representatives and other government officials.
"We will not short-change the farmers and care will be taken not to hurt their interests," he said.
The world's largest steel-maker, headed by India-born Laxmi Mittal, has sought 4,000 acres for setting up the steel project in the state (See: ArcelorMittal, Posco shifting to Karnataka)
The government has already said it is willing to extend to ArcelorMittal more tax concessions than those specified in the state's industrial policy. But sources said the steel-maker has not approached the state government for more concessions, according to the publication.
Baligar said there is enough dry land in Bellary and Bijapur, the districts shortlisted for setting up the project. ArecelorMittal is expected to decide on the site by the end of this month, Baligar said.
The delay in land acquisition has been a major hurdle for the world's largest steel maker for setting up its $20-billion steel projects in Orissa and Jharkhand.
On Thursday, Mittal had publicly complained that regulatory hurdles were blocking his projects in India.